Entry level California home costs up 88% since 2020.

[RSKY]

THIS is scary!!

GULP: Entry-Level California Home Costs Up 88% From 2020 and Now the Fires

hotair.com

 

[ericm979]

It's the payments that have gone up 88%, not prices, and half of that is due to interest rates rising quite a bit since 2020. It's in the report. The average California house is expensive for sure, but the house price rise is not as much as the headline would have you believe.

There's a lot of people who want to live in the population centers of CA. That's been true since the '70s at least.

 

[jyoutz]

For example, I refinanced my mortgage in 2021 at 2.75%. I think the rates are over 7% currently.

 

[Eagle1]

For example, I refinanced my mortgage in 2021 at 2.75%. I think the rates are over 7% currently.

I paid off my mortgage around that time
Happy Day....

 

[jyoutz]

I paid off my mortgage around that time
Happy Day....

I could have paid it off but invested those funds at a higher interest rate than 2.75%.

 

[Eagle1]

I could have paid it off but invested those funds at a higher interest rate than 2.75%.

I like the idea of not having payments, just the 2K or so annual government extortion.
Made it possible to shut down the business and retire away from people. Now I'm on my own schedule.

 

[CloverKnollFarms]

I like the idea of not having payments, just the 2K or so annual government extortion.
Made it possible to shut down the business and retire away from people. Now I'm on my own schedule.

Same. Paid off in 2014.

It will be interesting to see what the rebuild in California looks like after the fire. High building costs, red tape and 7% mortgages to people who had no fire insurance?

Maybe they will go back to an agrarian society

 

[jyoutz]

I like the idea of not having payments, just the 2K or so annual government extortion.
Made it possible to shut down the business and retire away from people. Now I'm on my own schedule.

I’m comforted by that fact that on any day I can pull my investments and pay off the mortgage. Meanwhile they are earning far more than 2.75%.

 

[CloverKnollFarms]

3% this week alone

 

[ultrarunner]

I have one of those 2.75 mortgages and can't bring myself to let it go as the money I would use to pay it off is currently 4.5 in the same credit union.

I'm very attuned to local home values and here in Oakland prices have dropped and commercial is dead selling for pennies on the dollar as 7 fire stations close in extreme fire areas and the city has a 110 million budget gap and the recalled mayor under indictment.

Three years ago property here was on fire metaphorically...

A 1500 square feet rancher circa 1960 was expected to sell for a million and was overbid 40% to 1.4 m by a 30 something professional couple... today a million is realistic.

The pandemic skewed the market in many ways...

 

[Snobdds]

It's the payments that have gone up 88%, not prices, and half of that is due to interest rates rising quite a bit since 2020. It's in the report. The average California house is expensive for sure, but the house price rise is not as much as the headline would have you believe.

There's a lot of people who want to live in the population centers of CA. That's been true since the '70s at least.

LOL...

Math brah, math.

If payments have gone up 88% (your number) and interest rates are up marginally by 4% (7%-3%), what is driving the other 80% of the payment?

The only way it fixes itself is if the asset price decreases. We are in the middle of one of the largest asset bubbles in history. The only way that happens is if the interest rates go up above 10% or unemployment craters. Pain is the only way out of this...

 

[not2old]

I bought my first house about 55 years ago and have constantly paid attention to the market. Yes, there have been bubbles and they occasionally burst but overall the market just keeps going up. I've never seen a flat market last more than 5 or 6 years. When I got out of school,a million dollars would buy you 25 average new house where I lived. Today, that's not enough for a down payment with an average income.

 

[Eagle1]

Around here a million will buy a serious spread.
https://www.realtor.com/realestatea...gton_MO_63638_M74092-00046?from=srp-list-card

$999,000

• 4bed
• 4.5bath
• 6,118 square feet
• 102.5 acre lot

And lot more....

 

[jyoutz]

Around here a million will buy a serious spread.
https://www.realtor.com/realestatea...gton_MO_63638_M74092-00046?from=srp-list-card

$999,000

• 4bed
• 4.5bath
• 6,118 square feet
• 102.5 acre lot

And lot more....

View attachment 2225280

Wow. Maybe I should consider retirement in your country?

 

[ultrarunner]

Around here a million will buy a serious spread.
https://www.realtor.com/realestatea...gton_MO_63638_M74092-00046?from=srp-list-card

$999,000

• 4bed
• 4.5bath
• 6,118 square feet
• 102.5 acre lot

And lot more....

View attachment 2225280

Amazing... no wonder folks cash out and leave.

 

[Eagle1]

Amazing... no wonder folks cash out and leave.

Well you in the middle of no where and an hour from a Walmart. However taxes on that are ~3500 per year so not too bad.

 

[Eagle1]

Amazing... no wonder folks cash out and leave.

I have 92 ac with a 12 ac pond, and 50+ rv spot, 5 rentals home when I bought the place (only have the ones by kids live in now) , residence (nothing to write home for), shower houses, pavilion, shop and barn. Have way under 500k in it, 2K taxes. Roads, real water and sewer systems included.
Paradise for me us now that I kicked the public out and use the park as pasture.

OH forgot thousands of acres of National Forest all around me.

 

[ultrarunner]

Well you in the middle of no where and an hour from a Walmart. However taxes on that are ~3500 per year so not too bad.

I’m in a city of 450,00 and our Walmart closed, theaters closed, fast food closed like In and Out Burger and 7 fire stations closed but my property tax on a 33 year old 3 bedroom home is 20k.

At one time I had a small interest in a property in Tahlequah.

 

[5030]

Real estate paid off isn't really ever paid off as you always have RE taxes to pay and if you don't the county will foreclose on it and sell it and if it don't cover the taxes, you still get to pay the balance due.

Far as Kalifornia is concerned, real estate has always been high there and getting worse with the constantly devaluing dollar. New York is the same deal btw.

Glad I live where I do. Farm is paid off and so are the rentals but I may refinance the farm at some point just for the deduction. One nice thing about the farm equipment is, they are all 100% deductible, both the interest and the principle and I never even ask what the finance rate is as I really don't care. The farm equipment offsets the taxes on the shop quite comfortably. We have an excellent accountant and usually get a sizeable refund every year so I don't mind paying him either.

I would never consider living in Kalifornia or New York for that matter. Neither state trips my trigger at all.

 

[5030]

Around here a million will buy a serious spread.
https://www.realtor.com/realestatea...gton_MO_63638_M74092-00046?from=srp-list-card

$999,000

• 4bed
• 4.5bath
• 6,118 square feet
• 102.5 acre lot

And lot more....

View attachment 2225280

For that much worth, I'd have a paved driveway....lol